Litecoin (LTC) showed a notable performance in the first quarter of the year, reaching more than 30 million transactions by March 30. Last year, this feat was achieved in July when LTC was trading at around $113.
The US Commodity Futures Trading Commission (CFTC) recently classified Litecoin as a commodity along with Bitcoin and Ethereum. The designation and rumors of a Litecoin exchange-traded fund (ETF) fueled bullish sentiment. Analysts and investors predicted a strong performance for the token.
Is Litecoin out of the woods?
Litecoin surged 10% last week, seemingly fueled by the positive sentiment of its community. As a result, the token rose above $100 and tested its resistance above the $105 level.
Crypto analyst Rekt Capital confirmed that, as April 1 began, LTC officially broke the macro downtrend for the first time since April 2021.
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$LTC
Litecoin closed monthly above the downtrend
This is confirmed
The macro downtrend was broken for the first time since April 2021
The Macro Downtrend is now officially over #LTC #Crypto #Litecoin https://t.co/yU7Gz7X1ck pic.twitter.com/ktgOYKTarz
— Rekt Capital (@rektcapital) April 1, 2024
According to the analyst, after successfully retesting its multi-year macro downtrend and turning it into a new support level, the token needed to stay above the $94 price range to confirm the end of the trend.
LTC closed the month above these levels. The token’s price rose above $110 for the second time this year. Nevertheless, the price did not last long as it faced an immediate correction and fell back to the $105-106 range.
After the correction, analyst The Cryptonomist suggested in an X post that if LTC’s price gets a “clean break” above this level, investors could “easily see” the price rise to $200.
In addition, crypto investor Crypto Surf pointed out that Litecoin “managed to close at or slightly above the 200 week,” as this is a “not bad” performance. In the charts, Crypto Surf highlights key points of the token’s performance from 2017-2021 and 2021-2024.
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$LTC actually managed to close at or slightly above the 200 week MA 😅
Let’s see what this new term, month and week brings us⌛️
For now we’re above the meme lines, so not bad. https://t.co/xqTDWet7tv pic.twitter.com/GT3asJBQF2
— Surf (@_CryptoSurf) April 1, 2024
The $146 pre-halving stop of Litecoin’s second halving event was surpassed about three months after it broke out of its 200-week moving average (MA). This breakout was followed by LTC’s all-time high (ATH) of $410 in 2021.
After Litecoin’s third halving event, LTC’s pre-halving stop reached the $115 price range. This top was tested and almost matched today when the token was trading at $112.
The charts suggest that if history repeats itself, LTC’s price could test higher resistance levels and a new ATH in the coming months. However, market dynamics and external events can hinder the token’s potential targets.
Was LTC’s Rise To $112 An April Fool’s Day Prank?
After briefly reaching its highest price of the year, LTC faced a correction that tore apart the gains registered over the weekend.
The token closed its March monthly candle above key benchmarks and has resisted above $100 for the past three days. Despite this, the price dropped below that important support zone. LTC has been hovering around the $98-99 price range for the past hour.
This drop represents a 3.8% drop from LTC’s price 24 hours ago and a 76.4% drop from its ATH. However, Litecoin’s LTC continues to register green numbers over longer time frames.
LTC increased by 8.8% and 8.9% in the weekly and monthly time frames. More notably, the token had a two-week gain of 19.9%.
Likewise, its daily trading volume rose significantly by 186.5% to reach $1.61 billion in the last 24 hours. LTC is the 19th largest cryptocurrency by market capitalization, according to CoinMarketCap data. At the time of writing, Litecoin is trading at $99.13.
Litecoin is trading at $99.13 on the 3-day chart. Source: LTCUSDT on Tradingview.com
Featured image from Unsplash.com, chart from TradingView.com
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While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
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